Jet Air May Order More Than 100 Planes at Paris Show, CAPA Says

May 10 (Bloomberg) -- Jet Airways (India) Ltd. may announce
an order for more than 100 planes from Boeing Co. and Airbus SAS
at the Paris Air Show next month, the CAPA Centre for Aviation
said, after the carrier won investment from Etihad Airways PJSC.

Jet Air, the nation’s biggest listed carrier, may buy 50
737 MAX and about 10 777-300ER from Boeing and order 50 Airbus
A320neos, the Sydney-based consulting company said in a report.
The total value of the order is about $12 billion at list prices
on the planemakers’ websites. Jet Air spokeswoman Ragini Chopra
didn’t immediately respond to three calls to her mobile phone
and a text message seeking comments on the report.

Jet Air, based in Mumbai, last month agreed to sell a 24
percent stake to Abu Dhabi’s Etihad after the Indian government
eased aviation investment rules to help carriers access funds.
Airlines in India have struggled to convert rising travel demand
into profits because of fuel costs and a price war that forced
Kingfisher Airlines Ltd. to halt operations.

“This represents the emergence of a new Jet Airways in the
aftermath of the investment from Etihad,” CAPA said. “Until
recently the carrier was unable to order aircraft because export
credit agencies were concerned about its leverage.”

The Paris Air Show begins June 17.

IndiGo Order

The “longer term order” from Jet Air may be as high as
200 planes that will be announced in phases, according to the
CAPA report. The airline currently has 109 planes. IndiGo, the
nation’s biggest discount carrier, ordered 180 Airbus A320 jets
in January 2011.

Shares of Jet Air rose as much as 1.4 percent to 599.40
rupees in Mumbai trading. The stock has gained about 6 percent
this year. SpiceJet Ltd., India’s only listed discount carrier,
fell 11 percent in the period.

Jet Air, including unit, has posted annual losses in each
of the five years through March 2012 and had total debt of 110
billion rupees at the end of that year, according to data
compiled by Bloomberg. The country’s aviation industry reported
$6.6 billion of losses in the past five years.

Competition is set to increase in India’s aviation market
as AirAsia Bhd.’s local venture with Tata Group will start
operations later this year.